* Prices IPO at 220 rupees/share for funds and 210 rupees
* Infratel IPO India's biggest in two years
* Bharti Airtel shares down 3.6 pct, lagging broad market
NEW DELHI, Dec 17 Indian telecommunications
tower operator Bharti Infratel Ltd priced its initial public
offering near the lower end of an indicative price range,
raising about $764 million in the country's biggest IPO in two
Bharti Infratel, a unit of top Indian mobile phone carrier
Bharti Airtel Ltd, said it fixed a price of 220 rupees
a share for funds and wealthy investors and 210 rupees a share
for retail investors. The company had set an indicative price
range of 210-240 rupees for the IPO.
The IPO, which closed on Friday, was subscribed 1.3 times.
In a pre-IPO sale, Bharti Infratel had agreed to allot shares to
cornerstone investors at 230 rupees a share.
According to Reuters calculations, the share sale should
have raised about 41.8 billion rupees ($764 million) and values
Bharti Infratel at about $7.6 billion.
Bharti Infratel was selling more than three quarters of the
total 188.9 million shares on offer, while four of its private
equity investors, including arms of Temasek and Goldman
Sachs, were selling the remainder.
Parent Bharti Airtel, which owned 86 percent of the tower
operator before the IPO, was not selling any share.
Bharti Infratel plans to build new towers and upgrade
existing towers with the IPO funds.
The shares should be listed on the Bombay Stock Exchange and
National Stock Exchange towards the end of the month, said a
person with direct knowledge of the matter, although the listing
date is yet to be finalised.
Shares of Bharti Airtel, owned nearly a third by Singapore
Telecommunications, were down 3.6 percent on Monday
afternoon in a Mumbai market that was down 0.4 percent.
($1 = 54.71 Indian rupees)
(Reporting by Devidutta Tripathy; Editing by Muralikumar